25% Pay Rise For Chinese Workers

Taiwan's Foxconn Technology Group has raised wages by up to 25% for its Chinese workers who assemble electronic gadgets for Apple and other global brands.

Foxconn said its Chinese workers now receive 1,800-2,500 yuan (£180-£250) per month following pay rises which took effect on February 1.Foxconn employs about one million workers at several massive plants in China.In 2010, a spate of worker suicides at an enormous Foxconn complex in the southern town of Shenzhen drew attention to the stress many young workers faced working in some factories.Subsequently, Foxconn then raised its monthly wages from 900 yuan (£90) to up to 2,000 yuan (£200).

I also read about many reports about Generation Y in the emerging world refusing to take up low paid, long hours work (while living off their parents). The tide may be turning (and also end of super cheap goods while MPC find new excuses on why inflation is consistently above the target...)

When I was in Beijingfiver half a decade ago before the latest bout of inflation the average wage was around 3000yuan a month. Basically what you are looking at here is a move from long hours and slave wages to long hours and low wages.

Generation Y in China isn't telling anyone to bog off, not with astronomical house prices and a rising cost of living.

I also read about many reports about Generation Y in the emerging world refusing to take up low paid, long hours work (while living off their parents). The tide may be turning (and also end of super cheap goods while MPC find new excuses on why inflation is consistently above the target...)

That's good then isn't it.

Trade deficits will reduce as the rational for production in China dissipates.

Ben's policy of inflating China will pay off eventually.

"The problem with capitalism is that eventually you end up with everyone else's money" RK"We have now entered The Great Rebalancing 2007-20xx" - RK"Gold will go to $1000, Silver to $18" - RK August 2011QE £100bn and build 1m council homes - RKCarney announces the launch of Empire 2.0 - Rise of the Banksters Oct '13

I also read about many reports about Generation Y in the emerging world refusing to take up low paid, long hours work (while living off their parents). The tide may be turning (and also end of super cheap goods while MPC find new excuses on why inflation is consistently above the target...)

Not really market forces with thousands more turning up for new Foxcom jobs every week than there are jobs. More like the realisation that the slaves might get unruly if they're not given a few more crumbs. That's why the lot of workers usually improves - ruling class fear.

Cause inflation worldwide to drive up wages then later wages can also rise in the West and assets don't look as overpriced in relation to incomes. They have to push their wages up first or the West is to uncompetitive. Meanwhile those relying on fixed incomes are totally stuffed, unless interest rates rise as well.

Democorruptcy
If you say "Democorruptcy" quickly, it sounds a bit like "Democracy". In a "Democracy" people vote for politicians who represent their interests. In the UK's "Democorruptcy" people can only vote for expense fiddling thieving MPs who are in the hip pocket of big business and the finance sector.

Governbankment
A "Governbankment" is a Government that has no line between itself and banks. It diverts public money (our taxes) to private companies (banks). George Osborne's Help to Buy Bail Banks, will see our taxes go to bankers to cover their losses on mortgages that default. The UK's Governbankment will even pay bankers "reasonable repossession fees" on Help to Bail Bank mortgages that default.

The Funding for Lending Scheme (FLS) is stealing from savers to make them pay for crimes by bankers. Via lower interest on savings, all the bank fines for PPI, LIBOR, interest rates swaps, etc. are being paid by savers so that bankers can keep pocketing bonuses.

"We need to make a really big change: from an economy built on debt to an economy built on savings" - David Camoron Jan 2009
"Printing money is the last resort of desperate governments when all other policies have failed" - George Osborne Jan 2009
- So what do Camoron & Osborne do? Print money and leave interest rates at 0.5% when inflation is over 5%

If it is asserted that civilization is a real advance in the condition of man -- and I think that it is, though only the wise improve their advantages -- it must be shown that it has produced better dwellings without making them more costly; and the cost of a thing is the amount of what I will call life which is required to be exchanged for it, immediately or in the long run.http://classiclit.ab...en-Part-2_4.htm

I also read about many reports about Generation Y in the emerging world refusing to take up low paid, long hours work (while living off their parents). The tide may be turning (and also end of super cheap goods while MPC find new excuses on why inflation is consistently above the target...)

Didn't Scepticus say this would happen. He wrote a post about it about 1 year ago. Can anyone confirm ?

'It was a bright cold day in April and the clocks were striking thirteen'

It's time to sue the Bank of England / Federal Reserve for GROSS NEGLIGENCEIf DEBT is the problem REPAYMENT is the solution or you default

"The trouble with the world was that prices were so low that only the rich people could buy and the aim of the Conference was to raise them to a point where it would again be possible for poor people to buy something."

"Northern unemployment is an acceptable price to pay for curbing southern inflation" Eddie George former Governor of the Bank of England

History repeats....of course they will catch up...as any other exploited Country takes up the means of production, its workers then become the neuvoux riche...see..singapore, and any other place that used to produce cheap goods for the West, cheaper than the West could do so.

WARNING

Your country is at risk if you do not keep up repayments on a gilt or other loan secured on it

So that's the target we need to reach in terms of pay in order to become competitive-- £62.50 a week

So it's not just flexible labour we need- it's financial contortionists with the ability to pay UK living costs on Chinese wages.

Uk living costs will (comparatively) fall.The great levelling is inevitable, it will be lumpy and contain periods of discomfort but we will all be better off for it eventually.

<< Formerly Super Ted >>

The banks are licenced by the government to extract profit from their slice of the monopoly in the issue of the state mandated means of exchange. Bankers bonuses like MPs expenses are distractions from theft and violence at a systematic level. -- ST-----You can avoid reality, but you cannot avoid the consequences of avoiding reality. -- Ayn Rand

Uk living costs will (comparatively) fall.The great levelling is inevitable, it will be lumpy and contain periods of discomfort but we will all be better off for it eventually.

A race to the bottom only ends when the bottom is reached- and who knows how deep that hole will be?

The oddest thing about the Globalists is their failure to grasp that a globlaised economy has no 'outside' - so when we- all at the same time- play the supply side game we end up with a world of exporters with no one to export to.

It's important to be competitive- that's true- but it's even more important that there be something to compete for. And that prize would be the disposable income that the supply side geniuses define as surplus fat on the sleek body of the economy.

So it may well be that when we have all transformed ourselves into the ultra efficient low wage production powerhouses we dream of becoming- we discover that there is no spending power left to absorb the products.